Goldman Sachs's Jan Hatzius reacts to September jobs report

• September nonfarm payrolls were +29K (vs. +84K est.), and the unemployment rate rose to 4.2% (vs. 4.1% est.).
• Goldman Sachs pushed back their forecast for the next Fed rate hike from October to December, citing recent PCE numbers and the jobs report.
• Hatzius believes markets are over-discounting future hikes, suggesting that if soft inflation numbers continue, even a December hike might not be necessary.
• Financial conditions, excluding equities, show significant tightening due to rising long-term interest rates, but overall, they are a 'very small headwind to growth'.

Goldman Sachs Chief Economist Jan Hatzius discusses the September jobs report, which came in weaker than expected, showing nonfarm payrolls at +29K versus an estimated +84K and an unemployment rate of 4.2%. This data, combined with recent inflation figures, suggests less aggressive monetary tightening from the Fed, potentially pushing back the next rate hike to December or even foregoing it if inflation remains soft.